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Please help me understand the question Butte sold a machine to a machine dealer for $50,900. Butte bought the machine for $54,100 several years ago
Please help me understand the question
Butte sold a machine to a machine dealer for $50,900. Butte bought the machine for $54,100 several years ago and has claimed $12,050 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?
Multiple Choice
- $8,850 1231 loss.
- $3,200 1231 loss.
- $8,850 ordinary gain.
- $8,850 capital gain.
- None of the choices are correct.
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